T-Mobile Wins Federal Approval for Sprint Merger
It took 10 years of fail attempts to buy or be bought by a rival wireless carrier, finally T-Mobile is closer to its goal for a merger.
“On Friday, the Department of Justice (DOJ) gave its long-sought approval for an ambitious plan by Bellevue-based T-Mobile US to acquire rival carrier Sprint.” (seattletimes.com)
The $26 billion deal, would combine T-Mobile, the nation’s third-largest wireless carrier, with Sprint, the fourth-largest. In fact, the new company would be nearly as large as Verizon Wireless and AT&T Mobility.
The two executives from the merging companies say the merge will deliver a range of new services and technologies; while achieving future cost savings of $43 billion.
“News of the DOJ approval sent shares in both companies climbing. T-Mobile stock closed up 5.4% at $84.25, while Sprint shares rose 6.6% to $7.93. shares in Sprint were up 7.5% to $8.01. It was also a relief for company officials, who appeared to have blind sided Thursday after the Justice Department delayed its approval because of a lawsuit by several states to block the deal.” (seattletimes.com)
Over the next five years, cost savings will come from eliminating redundant systems and operations; making employees on both sides uneasy.
Not only will Sprint and T-Mobile keep the main headquarters for the combined company in Bellevue, but also will maintain a “secondary headquarters” in what is now the Sprint headquarters in Overland Park near Kansas City, Kansas.